There is a crafting conflict between Chisels & Bits and Farmer's Delight. The Chisel and the Iron Knife are crafted the same way. The knife overrides the Chisel. I removed the Farmer's Delight mod, crafted the chisel and then loaded the Farmer's Delight mod back in and crafted the knife. This was tested on two separate computers using two separate worlds.

Is this on pack version 1.1?

This is the 1.0

I just noticed that there is a newer version - I did not know there was a newer version. I just downloaded this a couple of days ago so I guess I did not think there would be an update so fast. I will update it and see if that helps.